Method and system for facilitating trading of media space

ABSTRACT

A system for trading media space includes a server node which receives requests for media space from buyers and offers of media space from sellers. The server node includes a set of rules for matching one of the requests and one of the offers to form a matched request and offer pair. A delivery system is connected to said server node for facilitating delivery of media content between the buyer and seller of the matched pair.

RELATED APPLICATIONS

[0001] This application claims priority from U.S. Provisional PatentApplication Serial No. 60/254,571 which was filed on Dec. 11, 2000.

BACKGROUND OF THE INVENTION

[0002] 1. Field of the Invention

[0003] The present invention relates to trading of media space and, morespecifically, to an online system for trading advertisements.

[0004] 2. Description of the Related Art

[0005] Historically, revenues generated from selling media space foradvertising have represented an important source of income for mediacompanies. Television and radio stations as well as many Web sites relyalmost exclusively on advertising revenue to fund the cost of theiroperations so that they may provide programming and content free ofcharge to the general public. Similarly, general-interest newspapers andmagazines depend on advertising revenues to subsidize their cost ofoperations, allowing them to offer their publications to the public atlow prices or free of charge.

[0006] In recent years, the forums for advertising have become ascreative as they are ubiquitous: from banners on the sides of buses tostickers on peels of fruit. Advertising now represents a key componentof many economies. For example, in the U.S., advertising expendituresrepresented 2.2% of the 1999 GDP; this figure is predicted to rise to 3%by 2010.

[0007] Currently, there are four primary models or arrangements underwhich traditional media space (i.e., non-interactive) is traded. In afirst arrangement, a corporation wishing to advertise hires the servicesof an advertising agency, which buys space directly from media firms onbehalf of its client. According to a second arrangement, the advertisingagency purchases ad space through third party agents, which act onbehalf of the media firms. Less common than the first arrangement yetmore common than the second is a third arrangement in which theadvertiser negotiates and purchases media space directly from the mediafirms. Finally, the least common arrangement by which the advertisernegotiates and purchases media space from third party agents, which acton behalf of the media firms.

[0008] Existing systems and methods for buying and sellingnon-interactive media space are generally inefficient, in terms of time,human and capital resources employed. They are oftentimes ineffective inthat they produce sub-optimal results or waste unsold inventory. Thereasons for this relate to the fragmented structure of the industry:With thousands of geographically dispersed buyers and sellers, thecustomized nature of such transactions necessitates lengthy periods forcontract negotiation and market discovery.

[0009] Related to this is the fact that the metrics by which tradersdetermine the value of non interactive media space are of questionablestatistical significance 'and can be a subject of dispute, therebyhindering the commoditization of media space and the efficiency oftrading. Additionally, due to the inefficiencies described above,trading in noninteractive media is generally conducted well-beforescheduled placement, relying on metrics that are dated and ofteninaccurate by the time the advertisements appear.

[0010] There have been attempts to provide technological solutions tofacilitate more efficient and effective trading and placement ofinteractive media. A common prior art method collects information on thenumbers and demographic characteristics of users of contractedinteractive media sites, matches this information to user profiles,which the advertiser seeks to target, and then provides advertisementsto the various sites. Another method aimed at traditional mediatypically offers advertisers access to an integrated catalogue listingproduct information from multiple sellers of media space. Others offerbuyers software that helps automate advertising procurement, therebyreducing transaction costs. Yet none of these methods described providesan on-line exchange, which allows members to buy, sell and physicallydeliver media contents, in accordance with user-defined criteria.

[0011] Accordingly, there is a compelling need for the development ofsuch a media exchange, which facilitates real-time demand and supply andpricing for media space, matches buyers and sellers according to definedmetrics, and dynamically delivers the traded media contents.

SUMMARY OF THE INVENTION

[0012] An object of the present invention is to provide a method andsystem for facilitating flexible and efficient trading of media space.

[0013] A further object of the present invention is to provide a methodand a system for facilitating delivery of media content on the basis ofsettled trades.

[0014] According to an embodiment of the present invention, the systemprovides sellers of media space access to multiple buyers of media spacein one electronic marketplace, thereby allowing sellers to maximize thevalue of their unsold inventory.

[0015] According to another aspect of the invention, the system providesbuyers of media space access to multiple sellers of media space in oneelectronic marketplace, thereby expanding the purchasing opportunities.

[0016] According to still another aspect of the invention, there isprovided a single, integrated online environment for media research,planning, trading and content delivery.

[0017] An advantage of the present invention is that transaction costsassociated with the buying and selling of media space for both buyersand sellers of media space are reduced. The media space contemplated fortrading includes any space that may be offered by media such as, forexample, television radio, newspaper, magazine, Internet, outdoorsignage. The traded space is intended for placement of advertisementcontent and may include one or more of the following attributes:

[0018] Type of medium;

[0019] Unit of Trade;

[0020] Target Market;

[0021] Time Interval of Placement; and

[0022] Audience Characteristics (e.g., Ratings, Demographics).

[0023] Furthermore, the market participants may be any playerparticipating in the media space trading market such as, for example,Advertisers, Advertising Agencies (i.e, Representatives of Advertisers),Media Space Owners, and Agents of Media Space Owners. Other participantsmay include other types of media space brokers, risk managers, andspeculators.

[0024] Other objects and features of the present invention will becomeapparent from the following detailed description considered inconjunction with the accompanying drawings. It is to be understood,however, that the drawings are designed solely for purposes ofillustration and not as a definition of the limits of the invention, forwhich reference should be made to the appended claims. It should befurther understood that the drawings are not necessarily drawn to scaleand that, unless otherwise indicated, they are merely intended toconceptually illustrate the structures and procedures described herein.

BRIEF DESCRIPTION OF THE DRAWINGS

[0025] In the drawings:

[0026]FIG. 1 is a block diagram depicting a preferred embodiment of thepresent invention;

[0027]FIG. 2 is a schematic diagram of an input screen according to anembodiment of the invention; and

[0028]FIG. 3 is a flow diagram depicting the steps according to themethod of the present invention.

DETAILED DESCRIPTION OF THE PRESENTLY PREFERRED EMBODIMENTS

[0029]FIG. 1 is a block diagram of a system for trading media spaceaccording to and embodiment of the present invention. Marketparticipants such as, for example, buyers 10 of media space and sellers12 of media space interact with a server node 16 of the system throughan interface 14 which may, for example, comprise a computer, a cellularphone, a personal digital assistant (PDA), or any other device which iscapable of communication with the server node 16. The interface 14 maycommunicate with the server node 16 via a private network or an IPnetwork such as the Internet. The interface 14 includes an input channelsuch as a keyboard, electronic pen, voice recognition, or other inputwhich allows the seller market participants to submit offers (i.e.,asks) of media space the buyer market participants to submit requests(i.e., bids) for media space. The interface 14 also includes an outputchannel, such as a screen or a speaker for transmitting informationregarding the status of the submissions to the participants.

[0030]FIG. 2 shows an example of an input screen which may be presentedto a participant. The participant merely fills in the requiredinformation (discussed in more detail below) and submits the informationto the server node 16.

[0031] Referring back to FIG. 1, the server node 16 receives and storesbid and ask information that is submitted by the participants which may,for example, include the type of media space to be traded, the unit ofthe trade, quantity of the unit, the target market of the media space,time interval of placement, expected or guaranteed audiencecharacteristics, rate, content delivery information, and informationregarding the market participant responsible for the bid and ask.

[0032] The server node 16 includes a set of rules 16 a which includesrequirements and procedures for participation in the electronic marketsuch as, for example, the required method for submitting the offer andrequests, deal making processes, deal execution criteria, and deliveryoptions for delivery of the media from the advertiser to the media spaceowner. The bids and asks may be validated by the server node 16 usingknown authentication procedures. Submissions are entered into an activebid/ask database, the contents of which may be viewed by theparticipants. The server node 16 matches the bids and asks based on theparameters specified in the bids and asks which satisfy deal executionrequirements set forth in the set of rules 16 a. Confirmation ofexecuted deals is sent to the participants and the deal information isrecorded in a database.

[0033] A clearinghouse module 18 is linked to the server node 16 andperforms clearing, settlement, billing and other related back officefunctions on behalf of the parties for each executed trade transaction.

[0034] The server node 16 also facilitates the delivery of the mediacontent from the buyer of media space to the correspondingly matchedseller of media space after execution of a trade between the twoparties. In a preferred embodiment, buyers' content storage facilities20 are connected to switch node 22 through a first connection 24 andsellers' content storage facilities 26 are connected to the switch node22 through a second connection 28. A contents database and server 30 mayalso be connected to switch node 22. Connections 24 and 28 may, forexample, comprise an IP network, an e-mail system, or other filetransfer means. In a preferred embodiment, buyers desiring the system tofacilitate automatic delivery of content upon execution of trades sendthe offered media content to switch node 22 which directs the receivedmedia content to the content's database and server 30. Upon execution ofa trade, the server 16 instructs the switch node 22 to send the buyer'scontent from the content's database 30 to the correspondingly matchedseller. In this alternative embodiment, the content of the advertisementfrom the buyer of media space is automatically delivered to the sellerof media space upon completion of the trade. It is also possible for theseller to provide information to be stored in the content's database andserver 30 before the match is made.

[0035] In a further embodiment, the system may inform the participantsof the completed trade and provide information to the buyer which allowsthe buyer in the settled trade to directly send the content to theseller of the settled trade. In this embodiment, the system merelycoordinates the transfer of content and does not actually perform theautomatic delivery.

[0036]FIG. 3 shows the method according to the present invention. Thebids and asks are first received at the server node 16 in step 100. Thecontent of the advertisement to be displayed in the media space is thendownloaded from the buyer's content server to the contents database andserver 30, step 105. The server node 16 performs deal making algorithmto match bids and asks, step 110. When a deal is made, the participantsof the matched bid and ask are informed, step 115. The server node 16signals the switch node 22 and the content of the advertisement for thematched request for media space is automatically transmitted to thesellers' content server from the contents database and server 30, step120. The automatic delivery of the content allows the match to be anear-to-event transaction. That is, the match can be made in a spotmarket immediately prior to when the ad will be displayed.

[0037] Thus, while there have shown and described and pointed outfundamental novel features of the invention as applied to preferredembodiments thereof, it will be understood that various omissions andsubstitutions and changes in the form and details of the devicesillustrated, and in their operation, may be made by those skilled in theart without departing from the spirit of the invention. For example, itis expressly intended that all combinations of those elements and/ormethod steps which perform substantially the same function insubstantially the same way to achieve the same results are within thescope of the invention. Moreover, it should be recognized thatstructures and/or elements and/or method steps shown and/or described inconnection with any disclosed form or embodiment of the invention may beincorporated in any other disclosed or described or suggested form orembodiment as a general matter of design choice. It is the intention,therefore, to be limited only as indicated by the scope of the claimsappended hereto.

We claim:
 1. A system for trading media space, comprising: a server nodeoperatively connectable to user interfaces for receiving requests formedia space from buyers and offers of media space from sellers, saidserver comprising a set of rules for matching one of the requests andone of the offers to form a matched request and offer pair; and adelivery system connected to said server node for facilitating deliveryof media content between the buyer and seller of the matched request andoffer pair.
 2. The system of claim 1, wherein said server node comprisesmeans for sending notice of the matched request and offer pair to saiddelivery system, and wherein said delivery system comprises means forsending the media content of the one of the buyers of the matched pairto the one of the sellers of the matched pair in response to the notice.3. The system of claim 1, wherein said delivery system comprises aswitching node connected to said server node, a buyer's content databaseand a seller's content database, wherein the media content is deliveredfrom the buyer's content database to the seller's content database viasaid switching node.
 4. The system of claim 3, wherein said deliverysystem further comprises a contents database connected to the switchingnode, means for receiving and storing the content media from the buyerwhen the request is submitted to the server node and storing the contentmedia in the contents database, and means for delivering the contentmedia from the contents database to the one of the sellers of thematched pair via the switching node.
 5. The system of claim 3, whereinsaid switching node is connected to said buyer's content database andsaid seller's content database via a file transfer means.
 6. The systemof claim 3, wherein said switching node is connected to said buyercontent database and said seller content database via a file transfermeans consisting of one of an IP network and e-mail system.
 7. Thesystem of claim 3, wherein said delivery system further comprises acontents database connected to the switching node, means for receivingand storing the offered media content from the seller when the offer issubmitted to the server node and storing the offered media content inthe contents database, and means for delivering the content media fromthe buyer to the offer media content of the seller of the matched pairat the switching node.
 8. The system of claim 1, wherein said servernode is connectable to the buyers and the sellers via a wide areacommunication network.
 9. A method for trading media space, comprisingthe steps of: receiving, at a server node, requests for media space frombuyers and offers of media space from sellers; matching a request of oneof the buyers and an offer of one of the sellers at the server node thatsatisfy deal execution requirements to form a matched pair; anddelivering the media content from a first database of the one of thebuyers of the matched pair to a second database of the one of thesellers of the matched pair.
 10. The method of claim 9, wherein aswitching node is connected to the server node and said step ofdelivering includes sending the media content from the first database tothe second database via the switching node.
 11. The method of claim 10,wherein a contents database is connected directly to the switching nodeand the first and second databases are connected to the switching nodevia a file transfer means consisting of one of an IP network and e-mailsystem, and said method includes the steps of downloading the contentmedia from the first database to the contents database when the requestis transmitted to said server node and automatically sending the contentmedia from the contents database to the second database after said stepof matching.
 12. A memory comprising computer-readable instructions fortrading media space, comprising: computer readable instructions forreceiving, at a server node, requests for media space from buyers andoffers of media space from sellers, matching a request of one of thebuyers and an offer of one of the sellers at the server node thatsatisfy deal execution requirements to form a matched pair, anddelivering the media content from a first database of the one of thebuyers of the matched pair to a second database of the one of thesellers of the matched pair.
 13. The memory of claim 12, furthercomprising computer-readable instructions for delivering the mediacontent from the first database to the second database via a switchingnode connected to the server node.
 14. The method of claim 13, saidcomputer-readable instructions further comprising downloading thecontent media from the first database to a contents database connectedto said switching node when the request is transmitted to said servernode and automatically sending the content media from the contentsdatabase to the second database after the request of the one of thebuyers is matched with the offer of the one of the sellers.